MUMBAI: Hindustan Unilever Ltd (HUL), firm sales reported a decline in its fiscal fourth quarter profitability and volumes because of the covid-19 out break.
The company posted a net profit of Rs 1,519 crore for the quarter ended 31 March, down 1.2% year-on-year (YoY), while revenue from operations fell 9.4% to Rs 9,011 crore. Results missed analysts estimates.
“The spread of covid-19 impacted the business from mid-March, which culminated into scaling down of operations post the national lockdown. Domestic consumer growth declined by 9% with a decline of 7% in underlying volume growth,” HUL said in a filing to the stock exchanges.
Reported EBITDA margin contracted 40 basis points (160 bps reduction on comparable basis after adjusting for accounting impact of Ind AS 116).
Sanjiv Mehta, chairman and managing director HUL, said, “Covid-19 is perhaps the biggest challenge for us both from the lens of sustaining lives as well as livelihoods. The human impact of the pandemic is uncertain, and we are fully committed to working with the Government and our partners to ensure that we overcome this crisis together.”
HUL’s earnings—typically the he bellwether for India’s fast-moving consumer goods (FMCG) market—help gauge consumer demand and monitor sentiment.
Mehta added that with the GSK CH merger effective 1 April, iconic brands such as Horlicks and Boost will now enable the company address the nutritional needs of consumers. The company will focus on protecting the business model, grow competitively and contribute to the nation.